The length of a rectangle is increased by 10% and breadth is decreased by 10%. Then the area of the new rectangle is

  1. A. neither increased nor decreased
  2. B. increased by 1%
  3. C. decreased by 1%
  4. D. decreased by 10%

Correct Answer: C. decreased by 1%

Explanation

Using the successive percentage change formula x + y + \frac{xy}{100}: 10 - 10 + \frac{10 \times (-10)}{100} = -1\%. Thus, the area is decreased by 1%.

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